ML21048A424

From kanterella
Jump to navigation Jump to search
TVA EA - for Review: TVA Letters and Comm Plan - OUO Attachments
ML21048A424
Person / Time
Site: EA-20006, EA-20007
Issue date: 02/17/2021
From:
NRC
To:
NRC/OE
References
ASLBP 21-969-01-EA-BD01, 20-006-EA, 20-007-EA
Download: ML21048A424 (32)


Text

From: JSheaIA-Hearing Resource Sent: Wednesday, February 17, 2021 2:31 AM To: JSheaIA-HearingNPEm Resource

Subject:

For review: TVA letters and comm plan - OUO attachments Attachments: ML21042A018_Redacted.pdf

Hearing Identifier: JShea_IA_NonPublic Email Number: 1300 Mail Envelope Properties (d659621765844a52a3001d98e28929ed)

Subject:

For review: TVA letters and comm plan - OUO attachments Sent Date: 2/17/2021 2:31:23 AM Received Date: 2/17/2021 2:31:39 AM From: JSheaIA-Hearing Resource Created By: JSheaIA-Hearing.Resource@nrc.gov Recipients:

"JSheaIA-HearingNPEm Resource" <JSheaIA-HearingNPEm.Resource@nrc.gov>

Tracking Status: None Post Office: HQPWMSMRS02.nrc.gov Files Size Date & Time MESSAGE 3 2/17/2021 2:31:39 AM ML21042A018_Redacted.pdf 2536410 Options Priority: Normal Return Notification: No Reply Requested: No Sensitivity: Normal Expiration Date:

&Ž  :^/,ZŽ

^ d&WD

dŽ  :^/,EWZŽ

^ &ŽdsŽKhK

 D>Z









+HDULQJ,GHQWLILHU  -6KHDB,$B1RQ3XEOLF 

(PDLO1XPEHU   



0DLO(QYHORSH3URSHUWLHV   DHEEEDIFFHEHGI  



6XEMHFW   )RUUHYLHZ79$OHWWHUVDQGFRPPSODQ282DWWDFKPHQWV 

6HQW'DWH   30 

5HFHLYHG'DWH  30 

)URP   -6KHD,$+HDULQJ5HVRXUFH



&UHDWHG%\   -6KHD,$+HDULQJ5HVRXUFH#QUFJRY



5HFLSLHQWV   

-6KHD,$+HDULQJ13(P5HVRXUFH-6KHD,$+HDULQJ13(P5HVRXUFH#QUFJRY! 

7UDFNLQJ6WDWXV1RQH



3RVW2IILFH   +43:06056QUFJRY 



)LOHV     6L]H      'DWH 7LPH 

0(66$*(          30 

0/$B5HGDFWHGSGI     



2SWLRQV 

3ULRULW\     1RUPDO  

5HWXUQ1RWLILFDWLRQ    1R  

5HSO\5HTXHVWHG    1R  

6HQVLWLYLW\     1RUPDO 

([SLUDWLRQ'DWH    



&Ž 'Ž /

^ d & WD dŽ tŽ 'Ž ,Ž E ^ŽŽŽ 

 dŽŽ 

^ &Ž ds Ž KhK

 ds Ž ŽŽ W&Ž Ž >

ds&Ž W > &Ž W >

,Ž&Ž W >^&Ž

 KhK WŽ Ž /ŽŽ

'Ž E 

d E>K Ž K' / Ž ŽŽ

ŽŽ ZŽ // KW

/ Ž Ž Ž Ž Ž D^ K ZK/ Ž

Ž Ž Ž d

/

/  'Ž W

 s WŽ D K Ž Ž h^ E ZŽ ŽŽ dŽ

/'ŽŽ

 KhK WŽ Ž /ŽŽ

+HDULQJ ,GHQWLILHU -6KHDB,$B1RQ3XEOLF (PDLO 1XPEHU 

0DLO (QYHORSH 3URSHUWLHV  %/350%')$$$($&)$($(%

6XEMHFW )RU UHYLHZ 79$ OHWWHUV DQG FRPP SODQ  282 DWWDFKPHQWV 6HQW 'DWH   30 5HFHLYHG 'DWH   30

)URP *LIIRUG ,DQ

&UHDWHG %\ ,DQ*LIIRUG#QUFJRY 5HFLSLHQWV

7KRPSVRQ &DWKHULQH &DWKHULQH7KRPSVRQ#QUFJRY!

7UDFNLQJ 6WDWXV 1RQH

:LOVRQ *HRUJH *HRUJH:LOVRQ#QUFJRY!

7UDFNLQJ 6WDWXV 1RQH

+LOWRQ 1LFN 1LFN+LOWRQ#QUFJRY!

7UDFNLQJ 6WDWXV 1RQH

6RORULR 'DYH 'DYH6RORULR#QUFJRY!

7UDFNLQJ 6WDWXV 1RQH 3RVW 2IILFH  %/350%QDPSUGSURGRXWORRNFRP

)LOHV 6L]H 'DWH 7LPH 0(66$*(    30 79$  'LVFULPLQDWLRQ &RPPXQLFDWLRQ 3ODQB)LQDOGRF[ 

&KRLFH /HWWHU79$B)LQDOGRF[ 

3(& /HWWHU B)LQDOGRF[ 

3(& /HWWHU+HQGHUVRQB)LQDOGRF[ 

3(& /HWWHU6KHDB)LQDOGRF[ 

2SWLRQV 3ULRULW\ 1RUPDO 5HWXUQ 1RWLILFDWLRQ 1R 5HSO\ 5HTXHVWHG 1R 6HQVLWLYLW\ 1RUPDO

([SLUDWLRQ 'DWH

2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21 LQ YLRODWLRQ RI  &)5  WKH HPSOR\HH SURWHFWLRQ UHJXODWLRQ ,Q DGGLWLRQ WKH 'HSDUWPHQW RI

/DERU VXEVWDQWLDWHG GLVFULPLQDWLRQ LQ $XJXVW  ZKLFK LV D SXEOLF SURFHVV  $IWHU DSSHDOLQJ WKH ILQGLQJ 79$ DQG WKH LQGLYLGXDO VXEVHTXHQWO\ VHWWOHG WKH '2/ FRPSODLQW

  • 7KH SHUWLQHQW UHTXLUHPHQWV DUH

o  &)5  D  VWDWHV LQ SDUW WKDW GLVFULPLQDWLRQ E\ D &RPPLVVLRQ OLFHQVHH RU D FRQWUDFWRU RU VXEFRQWUDFWRU RI D &RPPLVVLRQ OLFHQVHH DJDLQVW DQ HPSOR\HH IRU HQJDJLQJ LQ FHUWDLQ SURWHFWHG DFWLYLWLHV LV SURKLELWHG

o  &)5  D VWDWHV LQ SDUW WKDW DQ\ HPSOR\HH RI D OLFHQVHH RU DQ\ FRQWUDFWRU

PD\ QRW HQJDJH LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHV D OLFHQVHH WR EH LQ YLRODWLRQ RI DQ\ UHJXODWLRQ RI WKH &RPPLVVLRQ

  • $SSDUHQW 9LRODWLRQV D 79$
  • )RXU DSSDUHQW YLRODWLRQV WRWDO 6/, DQG 6/,, IRU 6HTXR\DK UHODWHG WR 52, 

 DQG 6/, DQG 6/,, IRU 79$ &RUSRUDWH UHODWHG WR 52,  

  • (DFK DSSDUHQW YLRODWLRQ FDUULHV D FLYLO SHQDOW\ RI XS WR  ZKLFK UHVXOWV LQ D WRWDO FLYLO SHQDOW\ WR 79$ RI  7KH  FLYLO SHQDOW\ LV WKH PD[LPXP FLYLO PRQHWDU\ SHQDOW\ IRU D YLRODWLRQ SHU WKH (QIRUFHPHQW 3ROLF\

0/(  &RUUHFWLYH DFWLRQ FUHGLW FRXOG ORZHU WKH FLYLO SHQDOW\ DQG ZLOO EH GHWHUPLQHG DV PRUH LQIRUPDWLRQ LV JDWKHUHG GXULQJ WKH HQIRUFHPHQW SURFHVV

E ,QGLYLGXDO $FWLRQV

  • 6/, DSSDUHQW YLRODWLRQ IRU WKH ZLWK D \HDU EDQ
  • 6/, DSSDUHQW YLRODWLRQ IRU WKH 9LFH 3UHVLGHQW RI 5HJXODWRU\ $IIDLUV ZLWK D 

\HDU EDQ

  • 6/,, DSSDUHQW YLRODWLRQ IRU WKH IRUPHU 'LUHFWRU RI &RUSRUDWH 1XFOHDU /LFHQVLQJ ZLWK D \HDU EDQ
  • $OWHUQDWLYH 'LVSXWH 5HVROXWLRQ D 2QH &KRLFH /HWWHU ZLOO EH VHQW WR 79$ RIIHULQJ $'5 RU D 3(&

E 7KH LQGLYLGXDOV ZLOO EH VHQW &RQIHUHQFH /HWWHUV ZLWKRXW WKH RSWLRQ IRU $'5 DQG WKH SODQ LV WR KROG WKHLU FRQIHUHQFHV EHIRUH WKH 79$ $'53(&

  • 3UHYLRXV 79$ 'LVFULPLQDWLRQ &DVHV ,Q  WKH 15& LVVXHG D FRQILUPDWRU\ RUGHU &2 ($

 0/ WR 79$ WR DGGUHVV VDIHW\ FRQVFLRXV ZRUN HQYLURQPHQW 6&:( LVVXHV UHODWHG WR DGYHUVH DFWLRQV WDNHQ DJDLQVW HPSOR\HHV IRU UDLVLQJ FRQFHUQV DW %URZQV )HUU\

LQFOXGLQJ D FRQWUDFWRU ,Q  WKH 15& LVVXHG DQRWKHU &2 ($ 0/$ WR 79$ LQ SDUW WR DGGUHVV GHILFLHQFLHV QRWHG LQ 79$¶V LPSOHPHQWDWLRQ RI WKH  &2 79$ KDV VXEPLWWHG IRUPDO UHTXHVWV WR WKH 15& VLQFH -DQXDU\  WR FRPELQH WKHVH WZR &2V LQWR RQH

  • 15& ,QWHJUDWHG $SSURDFK

7KH 15& VWDII HJ 2( 2IILFH RI WKH *HQHUDO &RXQVHO 2*&  5HJLRQ ,, 2, LGHQWLILHG SRWHQWLDO FRPPRQ WKHPHV UHODWHG WR WKH LVVXHV DERYH 7KH UHFRPPHQGHG DSSURDFK LV WR HYDOXDWH WKH DERYH LVVXHV LQ SDUDOOHO DQG LQ DFFRUGDQFH ZLWK H[LVWLQJ SURFHVVHV LH HQIRUFHPHQW

LQVSHFWLRQ DVVHVVPHQW DOOHJDWLRQV LQYHVWLJDWLRQV  &RQWLQXHG GLDORJXH EHWZHHQ 2( 2*&

2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21



2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21

$ 7KH LQGLYLGXDO HQJDJHG LQ D SURWHFWHG DFWLYLW\

% 0DQDJHPHQW KDG NQRZOHGJH RI WKH SURWHFWHG DFWLYLW\

& $Q DGYHUVH DFWLRQ ZDV WDNHQ RU WKUHDWHQHG  DQG

' $ QH[XV H[LVWV EHWZHHQ WKH DGYHUVH DFWLRQ DQG WKH SURWHFWHG DFWLYLW\ LH WKH DFWLRQ ZDV WDNHQ LQ SDUW FRQWULEXWLQJ IDFWRU  RU LQ FORVH WHPSRUDO SUR[LPLW\ WR WKH SURWHFWHG DFWLYLW\ 

Q4. Did the individuals file a claim with the Department of Labor (DOL)?

<HV WKH LQGLYLGXDOV ILOHG FODLPV ZLWK '2/ )RU WKH ILUVW FDVH   WKH LQGLYLGXDO ILOHG D FODLP ZLWK '2/ EXW WKH FODLP ZDV QHYHU LQYHVWLJDWHG E\ '2/ EHFDXVH WKH LQGLYLGXDO VHWWOHG ZLWK 79$ LQ -XQH  )RU WKH VHFRQG FDVH   '2/

VXEVWDQWLDWHG WKH FDVH LQ $XJXVW  ZKLFK LV D SXEOLF SURFHVV  79$ DSSHDOHG WKH

'2/ GHWHUPLQDWLRQ DQG WKH FDVH ZDV VHWWOHG EHWZHHQ WKH SDUWLHV LQYROYHG LQ )HEUXDU\



Q5. How was the Severity Level determined in the discrimination case?

6HFWLRQ  RI WKH (QIRUFHPHQW 3ROLF\ 0/( ZDV XVHG 7KH SULPDU\ IDFWRUV LQFOXGHG

$ :KHWKHU WKH DFW ZDV ZLOOIXO LH GHOLEHUDWH

% 7KH SRVLWLRQV DXWKRULW\ OHYHO RI WKH LQYROYHG SHUVRQ V

& :KHWKHU WKH DGYHUVH DFWLRQ ZDV PRUH VLJQLILFDQW IRU WKH LQGLYLGXDO RU KDG D ZLGHVSUHDG VLWH LPSDFW Q6. What is a safety conscious work environment?

$ VDIHW\ FRQVFLRXV ZRUN HQYLURQPHQW 6&:( LV DQ HQYLURQPHQW LQ ZKLFK HPSOR\HHV IHHO IUHH WR UDLVH VDIHW\ FRQFHUQV ERWK WR WKHLU PDQDJHPHQW DQG WR WKH 15& ZLWKRXW IHDU RI UHWDOLDWLRQ

Q7. Will the conference letters to the individuals be publicly available?

7KH FRQIHUHQFH OHWWHUV WR WKH LQGLYLGXDOV ZKLFK LQFOXGH WKH DSSDUHQW YLRODWLRQ DQG WKH UHGDFWHG 2, UHSRUW GLVFULPLQDWLRQ FDVH RQO\  ZLOO EH LVVXHG DV QRQSXEOLF )RU WKH LVVXDQFH RI D ILQDO DFWLRQ WKH FRQIHUHQFH OHWWHUV ZLOO EH UHFODVVLILHG DV SXEOLF ,I QR ILQDO DFWLRQ LV WDNHQ WKH FRQIHUHQFH OHWWHUV ZLOO QRW EH PDGH SXEOLF 7KH UHGDFWHG 2, UHSRUW ZLOO QRW EH PDGH SXEOLF DW DQ\ SRLQW LQ WKH SURFHVV EXW ZRXOG EH UHHYDOXDWHG XQGHU

)2,$ RU D KHDULQJ LI UHTXHVWHG

2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21



2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21 Q8. What is a redacted OI Report?

$ UHGDFWHG 2, 5HSRUW LV FRS\ RI 2,¶V 5HSRUW RI ,QYHVWLJDWLRQ ZLWK DSSURSULDWH UHGDFWLRQV WR SURWHFW ZLWQHVV LGHQWLWLHV DQG LQYHVWLJDWLRQ WHFKQLTXHV DQG ZLWKRXW WKH VXSSRUWLQJ GRFXPHQWDWLRQ H[KLELWV RU RWKHU UHIHUHQFHG LQIRUPDWLRQ  ,W LV SURYLGHG WR GLVFULPLQDWLRQ FDVH SDUWLFLSDQWV SULRU WR D SUHGHFLVLRQDO HQIRUFHPHQW FRQIHUHQFH

Q9. How is the length of a ban be determined?

7\SLFDOO\ EDQV DUH IL[HG DW RQH WKUHH RU ILYH \HDUV )DFWRUV FRQVLGHUHG ZKHQ GHWHUPLQLQJ WKH OHQJWK RI D EDQ LQFOXGH EXW DUH QRW OLPLWHG WR WKH SRVLWLRQ RI WKH LQGLYLGXDO LQ WKH RUJDQL]DWLRQ DQG WKH VLJQLILFDQFH RU SRWHQWLDO VLJQLILFDQFH RI WKH XQGHUO\LQJ YLRODWLRQ 6HH ³$FWLRQ DJDLQVW WKH ,QGLYLGXDO' 6HFWLRQ  RI WKH (QIRUFHPHQW 0DQXDO 3DUW ,, 

Q10. Given that TVA is already subject to two orders associated with employee protection, why are you offering them ADR yet again?

7KLV PD\ EH DQ RSSRUWXQLW\ WR UHVSRQG ZLWK D EURDG DQG LQWHJUDWHG YLHZ 6SHFLILFDOO\

79$ KDV LGHQWLILHG OHVVRQV OHDUQHG EDVHG RQ LPSOHPHQWDWLRQ RI WKH SUHYLRXV WZR RUGHUV ZKHUH PRGLILFDWLRQV FRXOG LPSURYH WKH HIIHFWLYHQHVV RI WKH UHTXLUHG DFWLRQV

$GGLWLRQDOO\ WKH FXUUHQW FDVHV LQGLFDWH WKDW WKHUH DUH HLWKHU JDSV LQ WKH H[LVWLQJ RUGHUV

RU PRUH VLJQLILFDQW DFWLRQV QHHG WR EH WDNHQ LQ DGGLWLRQ WR WKH H[LVWLQJ UHTXLUHPHQWV

7KH XVH RI $'5 SURYLGHV DQ RSSRUWXQLW\ WR HQKDQFH ERWK HIIHFWLYHQHVV DQG FODULW\

Q11. Why wasnt ADR offered in the letter to the individuals?

7KH UHDVRQV IRU QRW RIIHULQJ $'5 DW WKLV SRLQW LQ WKH SURFHVV LQFOXGHG  WKH SDUWLFXODUO\

HJUHJLRXV DFWLRQV RI WKH KLJKOHYHO RIILFLDOV 6HFWLRQ  RI WKH (QIRUFHPHQW 3ROLF\  

WKH SRWHQWLDO LPSDFW RI $'5 FRQILGHQWLDOLW\ DJUHHPHQWV HJ LQIRUPDWLRQ IURP D VSHFLILF

$'5 VHVVLRQ FRXOG QRW EH XVHG WR GHWHUPLQH DFWLRQV IRU WKH RWKHU FDVHV  DQG  WKH QHHG IRU PRUH LQIRUPDWLRQ WR GHWHUPLQH LI WKH GLVFULPLQDWLRQ KDG D ZLGHVSUHDG LPSDFW DV GHVFULEHG LQ 6HFWLRQ  RI WKH (QIRUFHPHQW 3ROLF\ 7KH VWDII ZLOO GHWHUPLQH ZKHWKHU

$'5 ZLOO EH RIIHUHG VKRXOG ILQDO DFWLRQ OHWWHUV EH ZDUUDQWHG

Q12. What is a Chilling Effect Letter?

$ &KLOOLQJ (IIHFW /HWWHU &(/ LV D IRUPDO QRWLILFDWLRQ WR WKH OLFHQVHH DQG D UHJXODWRU\ WRRO WKDW WKH 15& XVHV WR HQVXUH WKDW OLFHQVHHV DUH WDNLQJ DSSURSULDWH DFWLRQV WR IRVWHU D ZRUNSODFH HQYLURQPHQW WKDW HQFRXUDJHV HPSOR\HHV WR UDLVH VDIHW\ FRQFHUQV DQG WR IHHO IUHH WR GR VR ZLWKRXW IHDU RI UHWDOLDWLRQ 7KH SXUSRVH RI WKH &(/ LV WR QRWLI\ WKH OLFHQVHH RI WKH 15& V FRQFHUQ ZLWK WKH 6&:( DW LWV IDFLOLW\ RQ WKH SXEOLF UHFRUG 15& XVHV WKH

&(/ WR REWDLQ LQIRUPDWLRQ DERXW WKH OLFHQVHH¶V DVVHVVPHQW RI LWV HPSOR\HHV¶ ZLOOLQJQHVV WR UDLVH VDIHW\ FRQFHUQV DW WKH IDFLOLW\ DQG WKH GHVFULSWLRQ RI DQ\ UHPHGLDO DFWLRQ WKH OLFHQVHH KDV WDNHQ RU SODQV WR WDNH WR DGGUHVV DQ\ LGHQWLILHG ZHDNQHVV EHFDXVH RI LWV 2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21



2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21 DVVHVVPHQW 6SHFLILFDOO\ LQ WKLV FDVH WKH 15& LQVSHFWRUV QRWHG DQ LQFUHDVH RI RSHUDWLRQDO LVVXHV WKDW ZHUH RI PLQRU DQG YHU\ ORZ VDIHW\ VLJQLILFDQFH

Q13. Will there be a press release announcing the issuance of the letters to TVA and the individuals?

1R WKHUH ZLOO QRW EH D SUHVV UHOHDVH DFFRPSDQ\LQJ LVVXDQFH RI WKH 79$ FKRLFH OHWWHU RU LQGLYLGXDO FRQIHUHQFH OHWWHUV 7KH 15& PD\ LVVXH D SXEOLF PHHWLQJ QRWLFH WR DQQRXQFH WKH WLPH DQG GDWH RI D 3(& ZLWK 79$ KRZHYHU WKH 3(& ZRXOG EH FORVHG WR SXEOLF REVHUYDWLRQ 1HZV UHOHDVHV PD\ EH LVVXHG LI WKH SURFHVV UHVXOWV LQ $'5 UHVROXWLRQ RU LVVXDQFH RI ILQDO DFWLRQV

Q14. Why is it safe to allow TVA plants to continue operating?

79$¶V QXFOHDU SODQWV FRQWLQXH WR RSHUDWH VDIHO\ 7KLV LV EDVHG RQ LQVLJKWV JDLQHG IURP 15& DVVHVVPHQWV LQFOXGLQJ WKH 15&¶V 5HDFWRU 2YHUVLJKW 3URFHVV DQG 3HUIRUPDQFH

,QGLFDWRUV 7KH 15& FRQGXFWV PRUH WKDQ  KRXUV RI VDIHW\ DQG VHFXULW\ LQVSHFWLRQV HYHU\ \HDU DW HDFK 79$ QXFOHDU SODQW 7KH 15&¶V UHVLGHQW LQVSHFWRUV PDLQWDLQ DQ RQVLWH SUHVHQFH DQG KDYH EHHQ IRFXVHG RQ XQGHUVWDQGLQJ WKH VWDWXV RI 79$¶V VDIHW\ FXOWXUH

$GGLWLRQDO LQIRUPDWLRQ DERXW SODQW VDIHW\ FDQ EH IRXQG LQ WKH ³6WDWXV RI $JHQF\ $FWLRQV IRU 79$ -DQXDU\ ' FRPPXQLFDWLRQ SODQ

2)),&,$/ 86( 21/< +/- 6(16,7,9( ,17(51$/ ,1)250$7,21



2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

>'DWH@

($

($

0U -LP %DUVWRZ 9LFH 3UHVLGHQW 1XFOHDU 5HJXODWRU\ $IIDLUV 6XSSRUW 6HUYLFHV 7HQQHVVHH 9DOOH\ $XWKRULW\

 0DUNHW 6WUHHW /3 $&

&KDWWDQRRJD 71 

68%-(&7 $33$5(17 9,2/$7,216 2) (03/2<(( 3527(&7,21 5(48,5(0(176 2)),&( 2) ,19(67,*$7,216 5(3257 126  DQG 

'HDU 0U %DUVWRZ

7KLV OHWWHU UHIHUV WR WZR LQYHVWLJDWLRQV FRPSOHWHG RQ 2FWREHU   DQG -DQXDU\   E\

WKH 86 1XFOHDU 5HJXODWRU\ &RPPLVVLRQ¶V 15& 2IILFH RI ,QYHVWLJDWLRQV 2, UHODWHG WR WKH 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$ 

7KH SXUSRVH RI WKH 15& 2, LQYHVWLJDWLRQ  ZDV WR GHWHUPLQH ZKHWKHU D IRUPHU 6LWH

/LFHQVLQJ 0DQDJHU HPSOR\HG E\ 79$ DW 6HTXR\DK ZDV WKH VXEMHFW RI HPSOR\PHQW GLVFULPLQDWLRQ LQ YLRODWLRQ RI 7LWOH  RI WKH Code of Federal Regulations  &)5 

³(PSOR\HH 3URWHFWLRQ' 7KH 15& GHWHUPLQHG WKDW WKH IRUPHU HPSOR\HH ZDV ILUVW VXEMHFW WR D KDUDVVPHQW LQYHVWLJDWLRQ DQG WKHQ SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH RQ 0D\   DQG FRQVWUXFWLYHO\ GLVFKDUJHG LQ SDUW IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV %HWZHHQ  DQG 

WKH IRUPHU HPSOR\HH UDLVHG FRQFHUQV QXPHURXV WLPHV WR &RUSRUDWH 1XFOHDU /LFHQVLQJ &1/ 

ZKLFK LQFOXGHG WKH 9LFH 3UHVLGHQW 93 RI 5HJXODWRU\ $IIDLUV DQG WKH IRUPHU 'LUHFWRU RI &1/

DERXW 79$¶V UHJXODWRU\ QRQFRPSOLDQFH UHJDUGLQJ WZR 15& QRQFLWHG YLRODWLRQV 1&9   WKH 0ROGHG &DVH &LUFXLW %UHDNHU 6HUYLFH /LIH 1&9 DQG  WKH 5HPRYDO RI .LUN .H\ ,QWHUORFNV 1&9

,Q DGGLWLRQ WKH IRUPHU HPSOR\HH UDLVHG QXPHURXV FRQFHUQV DERXW D QHJDWLYH FKLOOHG ZRUN HQYLURQPHQW WR ERWK (&3 DQG RWKHU 79$ HPSOR\HHV

7KH SXUSRVH RI WKH 15& 2, LQYHVWLJDWLRQ  ZDV WR GHWHUPLQH ZKHWKHU D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HPSOR\HG E\ 79$ LQ WKH &RUSRUDWH 2IILFH ZDV WKH VXEMHFW RI HPSOR\PHQW GLVFULPLQDWLRQ IRU SDUWLFLSDWLQJ LQ D SURWHFWHG DFWLYLW\ LQ YLRODWLRQ RI WKH 15&¶V ³(PSOR\HH 3URWHFWLRQ' UHJXODWLRQ VSHFLILFDOO\  &)5  7KH 15& GHWHUPLQHG WKDW WKH IRUPHU HPSOR\HH ZDV VXEMHFW WR D KDUDVVPHQW LQYHVWLJDWLRQ WKHQ SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH RQ 2FWREHU   DQG WHUPLQDWHG RQ -DQXDU\   LQ SDUW IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV %HWZHHQ  DQG  WKH IRUPHU HPSOR\HH UDLVHG QXPHURXV VDIHW\ FRQFHUQV LQFOXGLQJ YLRODWLRQV RI WKH 3DUW  )DWLJXH 5XOH UHTXLUHPHQWV DW

DWWV %DU  IDLOXUH WR DGKHUH WR WKH )XNXVKLPD UHTXLUHPHQWV DW 6HTXR\DK FRQFHUQV UHJDUGLQJ D :DWWV %DU  VXUYHLOODQFH H[WHQVLRQ UHTXHVW DQG IDLOXUH WR PHHW 15& FRPPLWPHQWV LQ 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

,QIRUPDWLRQ 1RWLFH  WR LGHQWLI\ $QFKRU 'DUOLQJ GRXEOH GLVF JDWH YDOYH VXVFHSWLELOLW\ WR IDLOXUH DW %URZQV )HUU\ 7KH IRUPHU HPSOR\HH DOVR UDLVHG FRQFHUQV UHJDUGLQJ D FKLOOHG ZRUN HQYLURQPHQW

15& VWDII UHYLHZHG WKH HYLGHQFH JDWKHUHG GXULQJ WKHVH 15& 2, LQYHVWLJDWLRQV DQG GHWHUPLQHG WKDW WKH DFWLRQV WDNHQ DJDLQVW WKHVH IRUPHU HPSOR\HHV ZHUH LQ DSSDUHQW YLRODWLRQV RI  &)5

 DQG WKDW WKH DSSDUHQW YLRODWLRQV ZHUH ZLOOIXO 7KHVH DSSDUHQW YLRODWLRQV DUH EHLQJ FRQVLGHUHG IRU HVFDODWHG HQIRUFHPHQW DFWLRQ LQ DFFRUGDQFH ZLWK WKH 15& (QIRUFHPHQW 3ROLF\

7KH FXUUHQW (QIRUFHPHQW 3ROLF\ FDQ EH IRXQG RQ WKH 15&¶V :HE VLWH DW ZZZQUFJRYDERXW

QUFUHJXODWRU\HQIRUFHPHQWHQIRUFHSROKWPO

7KH DSSDUHQW YLRODWLRQV ZKLFK DUH EDVHG RQ WKH 15&¶V 2, LQYHVWLJDWLRQV DQG VWDII¶V DQDO\VLV RI WKH HYLGHQFH ZHUH GLVFXVVHG ZLWK \RX GXULQJ D >GDWH@ WHOHSKRQH FRQYHUVDWLRQ

6LQFH WKH 15& KDV QRW PDGH D ILQDO GHWHUPLQDWLRQ LQ WKLV PDWWHU QR 1RWLFH RI 9LRODWLRQV DUH EHLQJ LVVXHG DW WKLV WLPH ,Q DGGLWLRQ SOHDVH EH DGYLVHG WKDW WKH FKDUDFWHUL]DWLRQ RI WKH DSSDUHQW YLRODWLRQV DQG WKH QXPEHU RI YLRODWLRQV PD\ FKDQJH DV D UHVXOW RI IXUWKHU 15& UHYLHZ

%HIRUH WKH 15& PDNHV LWV HQIRUFHPHQW GHFLVLRQ ZH DUH SURYLGLQJ \RX DQ RSSRUWXQLW\ WR HLWKHU

 UHTXHVW WR SDUWLFLSDWH LQ D FORVHG SUHGHFLVLRQDO HQIRUFHPHQW FRQIHUHQFH 3(&  RU

 UHTXHVW WR SDUWLFLSDWH LQ DQ DOWHUQDWLYH GLVSXWH UHVROXWLRQ $'5 VHVVLRQ 7KHVH RSWLRQV DUH GLVFXVVHG LQ WKH SDUDJUDSKV WKDW IROORZ 3OHDVH FRQWDFW &DWKHULQH 7KRPSVRQ DW 

RU HPDLO FDWKHULQHWKRPSVRQ#QUFJRY RU ,DQ *LIIRUG DW  RU HPDLO LDQJLIIRUG#QUFJRY ZLWKLQ  GD\V RI WKH GDWH RI WKLV OHWWHU WR QRWLI\ WKH 15& RI \RXU LQWHQGHG UHVSRQVH

,I \RX FKRRVH WR UHTXHVW D 3(& WKH FRQIHUHQFH ZLOO DIIRUG \RX WKH RSSRUWXQLW\ WR SURYLGH \RXU SHUVSHFWLYH RQ WKHVH PDWWHUV DQG DQ\ RWKHU LQIRUPDWLRQ WKDW \RX EHOLHYH WKH 15& VKRXOG WDNH LQWR FRQVLGHUDWLRQ EHIRUH PDNLQJ DQ HQIRUFHPHQW GHFLVLRQ 7KLV PD\ LQFOXGH LQIRUPDWLRQ WR GHWHUPLQH ZKHWKHU D YLRODWLRQ RFFXUUHG LQIRUPDWLRQ WR GHWHUPLQH WKH VLJQLILFDQFH RI WKH YLRODWLRQ LQIRUPDWLRQ UHODWHG WR WKH LGHQWLILFDWLRQ RI WKH YLRODWLRQ DQG LQIRUPDWLRQ UHODWHG WR DQ\

FRUUHFWLYH DFWLRQV WDNHQ RU SODQQHG 7KH GHFLVLRQ WR KROG D 3(& GRHV QRW PHDQ WKDW WKH 15&

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

7KH 15&¶V (QIRUFHPHQW 3ROLF\ SHUPLWV WKH LQGLYLGXDOV ZKR ZHUH WKH VXEMHFW RI WKH DOOHJHG HPSOR\PHQW GLVFULPLQDWLRQ WR SDUWLFLSDWH LQ WKH FRQIHUHQFH $FFRUGLQJO\ WKRVH LQGLYLGXDOV ZRXOG EH LQYLWHG WR DWWHQG WKH 3(& DQG PD\ SDUWLFLSDWH E\ REVHUYLQJ WKH FRQIHUHQFH )ROORZLQJ

\RXU SUHVHQWDWLRQ WKH LQGLYLGXDOV PD\ LI GHVLUHG SUHVHQW WKHLU YLHZV RQ ZK\ WKH\ EHOLHYH WKH 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ GLVFULPLQDWLRQ RFFXUUHG DQG FRPPHQW RQ \RXU SUHVHQWDWLRQ <RX ZRXOG WKHQ EH DIIRUGHG DQ RSSRUWXQLW\ WR UHVSRQG DQG WKH 15& PD\ DVN VRPH FODULI\LQJ TXHVWLRQV 8QGHU QR FLUFXPVWDQFHV ZRXOG WKH 15& VWDII SHUPLW \RX RU WKH IRUPHU HPSOR\HHV WR FURVVH[DPLQH RU TXHVWLRQ HDFK RWKHU

,Q OLHX RI D 3(& 79$ PD\ UHTXHVW $'5 ZLWK WKH 15& LQ DQ DWWHPSW WR UHVROYH WKLV LVVXH $'5 LV D JHQHUDO WHUP HQFRPSDVVLQJ YDULRXV WHFKQLTXHV IRU UHVROYLQJ FRQIOLFWV XVLQJ D QHXWUDO WKLUG SDUW\ 7KH $'5 SURFHVV WKDW WKH 15& HPSOR\V LV PHGLDWLRQ ,Q PHGLDWLRQ D QHXWUDO PHGLDWRU ZLWK QR GHFLVLRQPDNLQJ DXWKRULW\ KHOSV SDUWLHV FODULI\ LVVXHV H[SORUH VHWWOHPHQW RSWLRQV DQG HYDOXDWH KRZ EHVW WR DGYDQFH WKHLU UHVSHFWLYH LQWHUHVWV 7KH PHGLDWRU¶V UHVSRQVLELOLW\ LV WR DVVLVW WKH SDUWLHV LQ UHDFKLQJ DQ DJUHHPHQW +RZHYHU WKH PHGLDWRU KDV QR DXWKRULW\ WR LPSRVH D UHVROXWLRQ XSRQ WKH SDUWLHV 0HGLDWLRQ LV D FRQILGHQWLDO DQG YROXQWDU\ SURFHVV ,I WKH SDUWLHV WKH 15& DQG 79$ DJUHH WR XVH $'5 WKH\ VHOHFW D PXWXDOO\ DJUHHDEOH QHXWUDO PHGLDWRU DQG VKDUH HTXDOO\ WKH FRVW RI WKH PHGLDWRU¶V VHUYLFHV $GGLWLRQDO LQIRUPDWLRQ FRQFHUQLQJ WKH 15& V SURJUDP FDQ EH REWDLQHG DW KWWSZZZQUFJRYDERXWQUFUHJXODWRU\HQIRUFHPHQWDGUKWPO 7KH 6FKHLQPDQ¶V ,QVWLWXWH RQ &RQIOLFW 5HVROXWLRQ ,&5 DW &RUQHOO 8QLYHUVLW\ KDV DJUHHG WR IDFLOLWDWH WKH 15& V SURJUDP DV D QHXWUDO WKLUG SDUW\ 3OHDVH FRQWDFW ,&5 DW  ZLWKLQ  GD\V RI WKH GDWH RI WKLV OHWWHU LI \RX DUH LQWHUHVWHG LQ SXUVXLQJ UHVROXWLRQ RI WKLV LVVXH WKURXJK $'5

$Q $'5 PHGLDWLRQ VHVVLRQ VKRXOG EH KHOG ZLWKLQ  GD\V RI WKH GDWH RI WKLV OHWWHU

(QFORVHG DUH WKH UHGDFWHG 5HSRUWV RI ,QYHVWLJDWLRQ 52,  DQG  7KH 2, UHSRUWV SURYLGH DQ RYHUYLHZ RI WKH HYLGHQFH JDWKHUHG GXULQJ WKHVH LQYHVWLJDWLRQV %HFDXVH WKH 15& KDV QRW PDGH D ILQDO GHFLVLRQ UHJDUGLQJ WKH DSSDUHQW YLRODWLRQV WKH 15& ZLOO QRW PDNH WKH 2, UHSRUWV DYDLODEOH WR WKH JHQHUDO SXEOLF DQG ZH UHTXHVW WKDW \RX DOVR UHIUDLQ IURP GRLQJ VR ,I D 3(& LV KHOG WKH RWKHU 3(& SDUWLFLSDQWV ZLOO EH VHQW D FRS\ RI WKH UHOHYDQW UHGDFWHG 2, UHSRUW

,Q DFFRUGDQFH ZLWK  &)5  RI WKH 15& V 5XOHV RI 3UDFWLFH D FRS\ RI WKLV OHWWHU ZLOO EH PDGH DYDLODEOH HOHFWURQLFDOO\ IRU SXEOLF LQVSHFWLRQ LQ WKH 15& 3XEOLF 'RFXPHQW 5RRP RU IURP WKH 15&¶V GRFXPHQW V\VWHP $'$06  $'$06 LV DFFHVVLEOH IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJUPDGDPVKWPO ,Q DGGLWLRQ WKLV OHWWHU ZLOO EH PDLQWDLQHG E\ WKH 2IILFH RI (QIRUFHPHQW LQ DQ 15& 3ULYDF\ $FW V\VWHP RI UHFRUGV 15& (QIRUFHPHQW $FWLRQV

$JDLQVW ,QGLYLGXDOV 7KH 15& V\VWHP QRWLFH ZKLFK SURYLGHV GHWDLOHG LQIRUPDWLRQ DERXW WKLV V\VWHP RI UHFRUGV FDQ EH DFFHVVHG IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJ

UPIRLDSULYDF\V\VWHPVKWPO

6LQFHUHO\

  • HRUJH :LOVRQ 'LUHFWRU 15& 2IILFH RI (QIRUFHPHQW

'RFNHW 1RV       

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

/LFHQVH 1R '35 '35 '35 '35 '35 13) 13)

(QFORVXUHV

 $SSDUHQW 9LRODWLRQV

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

 185(*%5 (QIRUFHPHQW $'5 3URJUDP

',675,%87,21 :,7+287 (1&/2685(6 3 0RXOGLQJ 2*&

' &DVWHOYHWHU 23$

0 .RZDO 5,,

6 6SDUNV 5,,

0 'RDQH ('2 2( 5)

2WKHUV +/- WR EH DGGHG 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

$SSDUHQW 9LRODWLRQV

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW GLVFULPLQDWLRQ E\ D &RPPLVVLRQ OLFHQVHH IRU HQJDJLQJ LQ FHUWDLQ SURWHFWHG DFWLYLWLHV LV SURKLELWHG 'LVFULPLQDWLRQ LQFOXGHV GLVFKDUJH DQG RWKHU DFWLRQV WKDW UHODWH WR FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI HPSOR\PHQW

$SSDUHQW 9LRODWLRQV IRU 

Apparent Violation 1: &RQWUDU\ WR WKH DERYH RQ 0DUFK   7HQQHVVHH 9DOOH\ $XWKRULW\

79$ FRUSRUDWH PDQDJHPHQW GLVFULPLQDWHG DJDLQVW D IRUPHU 6LWH /LFHQVLQJ 0DQDJHU HPSOR\HG DW WKH 6HTXR\DK 1XFOHDU 3ODQW IRU HQJDJLQJ LQ D SURWHFWHG DFWLYLW\ 6SHFLILFDOO\ WKH IRUPHU 6LWH

/LFHQVLQJ 0DQDJHU HQJDJHG LQ D SURWHFWHG DFWLYLW\ E\ UDLVLQJ FRQFHUQV UHJDUGLQJ D FKLOOHG ZRUN HQYLURQPHQW ILOLQJ FRPSODLQWV ZLWK WKH (PSOR\HH &RQFHUQV 3URJUDP DQG E\ UDLVLQJ FRQFHUQV UHJDUGLQJ WKH UHVSRQVH WR WZR QRQFLWHG YLRODWLRQV $IWHU EHFRPLQJ DZDUH RI WKLV SURWHFWHG DFWLYLW\ WKH IRUPHU 'LUHFWRU RI &RUSRUDWH 1XFOHDU /LFHQVLQJ ILOHG D IRUPDO FRPSODLQW DJDLQVW WKH IRUPHU HPSOR\HH 7KH IRUPDO FRPSODLQW LQLWLDWHG DQ LQYHVWLJDWLRQ E\ WKH 79$ 2IILFH RI WKH

  • HQHUDO &RXQVHO WKDW UHVXOWHG LQ WKH IRUPHU HPSOR\HH EHLQJ SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH IRU QHDUO\ WKUHH PRQWKV XQWLO DW ZKLFK SRLQW WKH IRUPHU HPSOR\HH UHVLJQHG 7KLV DFWLRQ ZDV EDVHG DW OHDVW LQ SDUW RQ WKH IRUPHU HPSOR\HH HQJDJLQJ LQ D SURWHFWHG DFWLYLW\

Apparent Violation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

$SSDUHQW 9LRODWLRQV IRU 

Apparent Violation 3: &RQWUDU\ WR WKH DERYH RQ 0DUFK   79$ FRUSRUDWH PDQDJHPHQW GLVFULPLQDWHG DJDLQVW D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HPSOR\HG DW WKH 79$

&RUSRUDWH 2IILFH IRU HQJDJLQJ LQ D SURWHFWHG DFWLYLW\ 6SHFLILFDOO\ WKH IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HQJDJHG LQ D SURWHFWHG DFWLYLW\ E\ UDLVLQJ FRQFHUQV RI D FKLOOHG ZRUN HQYLURQPHQW $IWHU EHFRPLQJ DZDUH RI WKLV SURWHFWHG DFWLYLW\ WKH IRUPHU 'LUHFWRU RI

&RUSRUDWH 1XFOHDU /LFHQVLQJ ILOHG D IRUPDO FRPSODLQW DJDLQVW WKH IRUPHU HPSOR\HH 7KH IRUPDO FRPSODLQW LQLWLDWHG DQ LQYHVWLJDWLRQ E\ WKH 79$ 2IILFH RI WKH *HQHUDO &RXQVHO WKDW UHVXOWHG LQ WKH IRUPHU HPSOR\HH EHLQJ SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH IROORZHG E\ WHUPLQDWLRQ 7KLV DFWLRQ ZDV EDVHG DW OHDVW LQ SDUW RQ WKH IRUPHU HPSOR\HH HQJDJLQJ LQ D SURWHFWHG DFWLYLW\

Apparent Violation 4: &RQWUDU\ WR WKH DERYH EHWZHHQ 2FWREHU   DQG -DQXDU\  

79$ FRUSRUDWH PDQDJHPHQW GLVFULPLQDWHG DJDLQVW D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

,VVXHV HPSOR\HG DW WKH 79$ &RUSRUDWH 2IILFH IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV 6SHFLILFDOO\

WKH IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HQJDJHG LQ D SURWHFWHG DFWLYLW\ E\ UDLVLQJ FRQFHUQV RI D FKLOOHG ZRUN HQYLURQPHQW WR WKH 9LFH 3UHVLGHQW RI 5HJXODWRU\ $IIDLUV DQG D 79$

DWWRUQH\ GXULQJ D 79$ 2IILFH RI WKH *HQHUDO &RXQVHO LQYHVWLJDWLRQ $IWHU EHFRPLQJ DZDUH RI WKLV SURWHFWHG DFWLYLW\ WKH 9LFH 3UHVLGHQW RI 5HJXODWRU\ $IIDLUV SODFHG WKH IRUPHU HPSOR\HH RQ SDLG DGPLQLVWUDWLYH OHDYH DQG SOD\HG D VLJQLILFDQW UROH LQ WHUPLQDWLQJ WKH IRUPHU HPSOR\HH 7KHVH DFWLRQV ZHUH EDVHG DW OHDVW LQ SDUW RQ WKH IRUPHU HPSOR\HH HQJDJLQJ LQ D SURWHFWHG DFWLYLW\

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

%HIRUH WKH 15& PDNHV LWV HQIRUFHPHQW GHFLVLRQ D FORVHG SUHGHFLVLRQDO HQIRUFHPHQW FRQIHUHQFH 3(& ZLOO EH KHOG WR GLVFXVV WKH DSSDUHQW YLRODWLRQ 7KH 15& ZLOO FRQWDFW \RX WR GHWHUPLQH D PXWXDOO\ DJUHHDEOH GDWH WLPH DQG ORFDWLRQ IRU WKH 3(& 7KH 3(& ZLOO EH FORVHG WR SXEOLF REVHUYDWLRQ VLQFH LW LV DVVRFLDWHG ZLWK DQ 2, UHSRUW DQG WKH UHVXOWV KDYH QRW EHHQ SXEOLFO\

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

VKRXOG WDNH LQWR FRQVLGHUDWLRQ LQ PDNLQJ DQ HQIRUFHPHQW GHFLVLRQ $ 3(& VKRXOG EH KHOG ZLWKLQ

 GD\V RI WKH GDWH RI WKLV OHWWHU

7KH 15&¶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

(QFORVHG LV WKH UHGDFWHG 5HSRUW RI ,QYHVWLJDWLRQ 52,  7KH 2, UHSRUW SURYLGHV DQ RYHUYLHZ RI WKH HYLGHQFH JDWKHUHG GXULQJ WKH LQYHVWLJDWLRQ %HFDXVH WKH 15& KDV QRW PDGH D ILQDO GHFLVLRQ UHJDUGLQJ WKH DSSDUHQW YLRODWLRQ WKH 15& ZLOO QRW PDNH WKH 2, UHSRUW DYDLODEOH WR WKH JHQHUDO SXEOLF DQG ZH UHTXHVW WKDW \RX DOVR UHIUDLQ IURP GRLQJ VR 2WKHU 3(& SDUWLFLSDQWV ZLOO DOVR EH VHQW D FRS\ RI WKH UHGDFWHG 2, UHSRUW

$ FRS\ RI WKLV OHWWHU DQG LWV HQFORVXUHV ZLOO QRW EH PDGH SXEOLFO\ DYDLODEOH DW WKLV WLPH +RZHYHU

LI WKH 15& VXEVHTXHQWO\ LVVXHV DQ HQIRUFHPHQW DFWLRQ WR \RX LQ DFFRUGDQFH ZLWK  &)5 

RI WKH 15& V 5XOHV RI 3UDFWLFH D FRS\ RI WKLV OHWWHU ZLOO EH PDGH DYDLODEOH HOHFWURQLFDOO\ IRU SXEOLF LQVSHFWLRQ LQ WKH 15& 3XEOLF 'RFXPHQW 5RRP RU IURP WKH 15&¶V GRFXPHQW V\VWHP

$'$06  $'$06 LV DFFHVVLEOH IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJ

UPDGDPVKWPO ,Q DGGLWLRQ WKLV OHWWHU ZLOO EH PDLQWDLQHG E\ WKH 2IILFH RI (QIRUFHPHQW LQ DQ 15& 3ULYDF\ $FW V\VWHP RI UHFRUGV 15& (QIRUFHPHQW $FWLRQV $JDLQVW ,QGLYLGXDOV 7KH 15& V\VWHP QRWLFH ZKLFK SURYLGHV GHWDLOHG LQIRUPDWLRQ DERXW WKLV V\VWHP RI UHFRUGV FDQ EH DFFHVVHG IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJUPIRLDSULYDF\V\VWHPVKWPO

6LQFHUHO\

  • HRUJH :LOVRQ 'LUHFWRU 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ 15& 2IILFH RI (QIRUFHPHQW (QFORVXUHV

 $SSDUHQW 9LRODWLRQ

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

',675,%87,21 :,7+287 (1&/2685(6 3 0RXOGLQJ 2*&

' &DVWHOYHWHU 23$

0 .RZDO 5,,

6 6SDUNV 5,,

% +XJKHV 155 0 'RDQH ('2 2( 5)

2WKHUV +/- WR EH DGGHG 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

$SSDUHQW 9LRODWLRQ

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW GLVFULPLQDWLRQ E\ D &RPPLVVLRQ OLFHQVHH DJDLQVW DQ HPSOR\HH IRU HQJDJLQJ LQ FHUWDLQ SURWHFWHG DFWLYLWLHV LV SURKLELWHG 'LVFULPLQDWLRQ LQFOXGHV GLVFKDUJH DQG RWKHU DFWLRQV WKDW UHODWH WR FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI HPSOR\PHQW

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW DQ\ HPSOR\HH RI D OLFHQVHH PD\ QRW  (QJDJH LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHV RU ZRXOG KDYH FDXVHG LI QRW GHWHFWHG D OLFHQVHH RU DSSOLFDQW WR EH LQ YLRODWLRQ RI DQ\ UXOH UHJXODWLRQ RU RUGHU RU DQ\ WHUP FRQGLWLRQ RU OLPLWDWLRQ RI DQ\

OLFHQVH LVVXHG E\ WKH &RPPLVVLRQ

&RQWUDU\ WR WKH DERYH RQ 0D\   \RX HQJDJHG LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHG 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$  DQ 15& OLFHQVHH WR GLVFULPLQDWH DJDLQVW D IRUPHU 79$ 6LWH

/LFHQVLQJ 0DQDJHU IRU HQJDJLQJ LQ D SURWHFWHG DFWLYLW\ 6SHFLILFDOO\ WKH IRUPHU HPSOR\HH HQJDJHG LQ D SURWHFWHG DFWLYLW\ E\ ILOLQJ FRPSODLQWV ZLWK WKH (PSOR\HH &RQFHUQV 3URJUDP $IWHU EHFRPLQJ DZDUH RI WKLV SURWHFWHG DFWLYLW\ \RX DV WKH UHFRPPHQGHG WKDW WKH IRUPHU HPSOR\HH EH SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH IRU QHDUO\ WKUHH PRQWKV XQWLO DW ZKLFK SRLQW WKH IRUPHU HPSOR\HH ZDV FRQVWUXFWLYHO\

GLVFKDUJHG <RXU DFWLRQ ZDV EDVHG DW OHDVW LQ SDUW RQ WKH IRUPHU HPSOR\HH HQJDJLQJ LQ D SURWHFWHG DFWLYLW\

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

>'DWH@

,$

0V (ULQ +HQGHUVRQ

$5(66 5(029('

68%-(&7 18&/($5 5(*8/$725< &200,66,21 2)),&( 2) ,19(67,*$7,216 5(3257 126  DQG 

'HDU 0V +HQGHUVRQ

7KLV OHWWHU UHIHUV WR WZR LQYHVWLJDWLRQV FRPSOHWHG RQ 2FWREHU   DQG -DQXDU\   E\

WKH 86 1XFOHDU 5HJXODWRU\ &RPPLVVLRQ¶V 15& 2IILFH RI ,QYHVWLJDWLRQV 2, FRQFHUQLQJ \RXU DFWLYLWLHV DW WKH 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$ 

7KH SXUSRVH RI WKH 15& 2, LQYHVWLJDWLRQ  ZDV WR GHWHUPLQH ZKHWKHU D IRUPHU 6LWH

/LFHQVLQJ 0DQDJHU HPSOR\HG E\ 79$ DW 6HTXR\DK ZDV WKH VXEMHFW RI HPSOR\PHQW GLVFULPLQDWLRQ LQ YLRODWLRQ 7LWOH  RI WKH Code of Federal Regulations  &)5  ³(PSOR\HH 3URWHFWLRQ' 7KH 15& GHWHUPLQHG WKDW WKH IRUPHU HPSOR\HH ZDV VXEMHFW WR DQ LQYHVWLJDWLRQ DQG WKHQ SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH RQ 0D\   LQ SDUW IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV %HWZHHQ  DQG  WKH IRUPHU HPSOR\HH UDLVHG FRQFHUQV WR &RUSRUDWH 1XFOHDU

/LFHQVLQJ &1/  ZKLFK LQFOXGHG \RX DERXW 79$¶V UHJXODWRU\ QRQFRPSOLDQFH UHJDUGLQJ WZR 15& QRQFLWHG YLRODWLRQV 1&9   WKH 0ROGHG &DVH &LUFXLW %UHDNHU 6HUYLFH /LIH 1&9 DQG 

WKH 5HPRYDO RI .LUN .H\ ,QWHUORFNV 1&9 ,Q DGGLWLRQ WKH IRUPHU HPSOR\HH UDLVHG FRQFHUQV UHJDUGLQJ D FKLOOHG ZRUN HQYLURQPHQW LQFOXGLQJ ILOLQJ WZR FRPSODLQWV DJDLQVW \RX 2Q 0DUFK 

 \RX VXEPLWWHG D IRUPDO FRPSODLQW DJDLQVW WKH IRUPHU HPSOR\HH DOOHJLQJ WKDW WKH IRUPHU HPSOR\HH ZDV KDUDVVLQJ \RX ZKLFK WULJJHUHG DQ LQYHVWLJDWLRQ 7KH 15& GHWHUPLQHG WKDW WKH FRPSODLQW \RX ILOHG ZKLFK WULJJHUHG WKLV LQYHVWLJDWLRQ ZDV LQ SDUW IRU WKH IRUPHU HPSOR\HH HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV

7KH SXUSRVH RI WKH 15& 2, LQYHVWLJDWLRQ  ZDV WR GHWHUPLQH ZKHWKHU D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HPSOR\HG E\ 79$ &RUSRUDWH ZDV WKH VXEMHFW RI HPSOR\PHQW GLVFULPLQDWLRQ IRU SDUWLFLSDWLQJ LQ D SURWHFWHG DFWLYLW\ LQ YLRODWLRQ RI WKH 15&¶V

³(PSOR\HH 3URWHFWLRQ' VSHFLILFDOO\  &)5  7KH 15& GHWHUPLQHG WKDW WKH IRUPHU HPSOR\HH ZDV VXEMHFW WR DQ LQYHVWLJDWLRQ LQ SDUW IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV %HWZHHQ

 DQG  WKH IRUPHU HPSOR\HH UDLVHG QXPHURXV VDIHW\ FRQFHUQV LQFOXGLQJ YLRODWLRQV RI WKH 3DUW  )DWLJXH 5XOH UHTXLUHPHQWV DW :DWWV %DU  IDLOXUH WR DGKHUH WR WKH )XNXVKLPD UHTXLUHPHQWV DW 6HTXR\DK FRQFHUQV UHJDUGLQJ D :DWWV %DU  VXUYHLOODQFH H[WHQVLRQ UHTXHVW

DQG IDLOXUH WR PHHW 15& FRPPLWPHQWV LQ ,QIRUPDWLRQ 1RWLFH  WR LGHQWLI\ $QFKRU 'DUOLQJ GRXEOH GLVF JDWH YDOYH VXVFHSWLELOLW\ WR IDLOXUH DW %URZQV )HUU\ 7KH IRUPHU HPSOR\HH DOVR UDLVHG FRQFHUQV UHJDUGLQJ D FKLOOHG ZRUN HQYLURQPHQW 2Q 0DUFK   \RX ILOHG D FRPSODLQW ZLWK 79$ DFFXVLQJ VHYHUDO HPSOR\HHV LQFOXGLQJ WKH IRUPHU HPSOR\HH RI FUHDWLQJ D KRVWLOH ZRUNSODFH DQG HQJDJLQJ LQ LQVXERUGLQDWH FRQGXFW ,Q WKH FRPSODLQW \RX VSHFLILFDOO\ FLWHG WKDW 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

\RX VXVSHFWHG WKDW WKH IRUPHU HPSOR\HH KDG PDGH DVVHUWLRQV WR WKH 15& DERXW D FKLOOHG ZRUN HQYLURQPHQW DV DQ H[DPSOH RI UHWDOLDWRU\ EHKDYLRU LPSRVHG E\ WKH IRUPHU HPSOR\HH

&RQWDFWLQJ WKH 15& DQG UDLVLQJ FRQFHUQV RI D FKLOOHG ZRUN HQYLURQPHQW DUH SURWHFWHG DFWLYLWLHV

7KH 15& VWDII UHYLHZHG WKH HYLGHQFH JDWKHUHG GXULQJ WKHVH 15& 2, LQYHVWLJDWLRQV DQG GHWHUPLQHG WKDW WKH DFWLRQ WDNHQ DJDLQVW WKHVH IRUPHU HPSOR\HHV ZHUH LQ DSSDUHQW YLRODWLRQ RI WKH 15&¶V UXOH SURKLELWLQJ GHOLEHUDWH PLVFRQGXFW  &)5  D  %DVHG RQ WKH HYLGHQFH GHYHORSHG GXULQJ WKH LQYHVWLJDWLRQV DQG VXEVHTXHQW VWDII DQDO\VLV LW DSSHDUV WKDW \RX DV WKH IRUPHU 'LUHFWRU RI &1/ HQJDJHG LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHG DQ 15& OLFHQVHH WR EH LQ YLRODWLRQ RI  &)5  ³(PSOR\HH 3URWHFWLRQ' 7KH DSSDUHQW YLRODWLRQ LV EHLQJ FRQVLGHUHG IRU HVFDODWHG HQIRUFHPHQW DFWLRQ LQ DFFRUGDQFH ZLWK WKH 15& (QIRUFHPHQW 3ROLF\ 7KH FXUUHQW (QIRUFHPHQW 3ROLF\ FDQ EH IRXQG RQ WKH 15&¶V :HE VLWH DW ZZZQUFJRYDERXW

QUFUHJXODWRU\HQIRUFHPHQWHQIRUFHSROKWPO

7KH DSSDUHQW YLRODWLRQ ZKLFK LV EDVHG RQ WKH 15&¶V 2, LQYHVWLJDWLRQV DQG VWDII¶V DQDO\VLV RI WKH HYLGHQFH ZHUH GLVFXVVHG ZLWK \RX GXULQJ D >GDWH@ WHOHSKRQH FRQYHUVDWLRQ

6LQFH WKH 15& KDV QRW PDGH D ILQDO GHWHUPLQDWLRQ LQ WKLV PDWWHU QR 1RWLFH RI 9LRODWLRQ LV EHLQJ LVVXHG DW WKLV WLPH ,Q DGGLWLRQ SOHDVH EH DGYLVHG WKDW WKH FKDUDFWHUL]DWLRQ RI WKH DSSDUHQW YLRODWLRQV DQG WKH QXPEHU RI YLRODWLRQV PD\ FKDQJH DV D UHVXOW RI IXUWKHU 15& UHYLHZ

%HIRUH WKH 15& PDNHV LWV HQIRUFHPHQW GHFLVLRQ D FORVHG SUHGHFLVLRQDO HQIRUFHPHQW FRQIHUHQFH 3(& ZLOO EH KHOG WR GLVFXVV WKH DSSDUHQW YLRODWLRQ 7KH 15& ZLOO FRQWDFW \RX WR GHWHUPLQH D PXWXDOO\ DJUHHDEOH GDWH WLPH DQG ORFDWLRQ IRU WKH 3(& 7KH 3(& ZLOO EH FORVHG WR SXEOLF REVHUYDWLRQ VLQFH LW LV DVVRFLDWHG ZLWK DQ 2, UHSRUW DQG WKH UHVXOWV KDYH QRW EHHQ SXEOLFO\

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

VKRXOG WDNH LQWR FRQVLGHUDWLRQ LQ PDNLQJ DQ HQIRUFHPHQW GHFLVLRQ $ 3(& VKRXOG EH KHOG ZLWKLQ

 GD\V RI WKH GDWH RI WKLV OHWWHU

7KH 15&¶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

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ (QFORVHG DUH WKH UHGDFWHG 5HSRUWV RI ,QYHVWLJDWLRQ 52,  DQG  7KH 2, UHSRUWV SURYLGH DQ RYHUYLHZ RI WKH HYLGHQFH JDWKHUHG GXULQJ WKHVH LQYHVWLJDWLRQV %HFDXVH WKH 15& KDV QRW PDGH D ILQDO GHFLVLRQ UHJDUGLQJ WKH DSSDUHQW YLRODWLRQV WKH 15& ZLOO QRW PDNH WKH 2, UHSRUWV DYDLODEOH WR WKH JHQHUDO SXEOLF DQG ZH UHTXHVW WKDW \RX DOVR UHIUDLQ IURP GRLQJ VR

7KH RWKHU 3(& SDUWLFLSDQWV ZLOO EH VHQW D FRS\ RI WKH UHOHYDQW UHGDFWHG 2, UHSRUWV

$ FRS\ RI WKLV OHWWHU DQG LWV HQFORVXUHV ZLOO QRW EH PDGH SXEOLFO\ DYDLODEOH DW WKLV WLPH +RZHYHU

LI WKH 15& VXEVHTXHQWO\ LVVXHV DQ HQIRUFHPHQW DFWLRQ WR \RX LQ DFFRUGDQFH ZLWK  &)5 

RI WKH 15& V 5XOHV RI 3UDFWLFH D FRS\ RI WKLV OHWWHU ZLOO EH PDGH DYDLODEOH HOHFWURQLFDOO\ IRU SXEOLF LQVSHFWLRQ LQ WKH 15& 3XEOLF 'RFXPHQW 5RRP RU IURP WKH 15&¶V GRFXPHQW V\VWHP

$'$06  $'$06 LV DFFHVVLEOH IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJ

UPDGDPVKWPO ,Q DGGLWLRQ WKLV OHWWHU ZLOO EH PDLQWDLQHG E\ WKH 2IILFH RI (QIRUFHPHQW LQ DQ 15& 3ULYDF\ $FW V\VWHP RI UHFRUGV 15& (QIRUFHPHQW $FWLRQV $JDLQVW ,QGLYLGXDOV 7KH 15& V\VWHP QRWLFH ZKLFK SURYLGHV GHWDLOHG LQIRUPDWLRQ DERXW WKLV V\VWHP RI UHFRUGV FDQ EH DFFHVVHG IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJUPIRLDSULYDF\V\VWHPVKWPO

6LQFHUHO\

  • HRUJH :LOVRQ 'LUHFWRU 15& 2IILFH RI (QIRUFHPHQW (QFORVXUHV

 $SSDUHQW 9LRODWLRQ

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

',675,%87,21 :,7+287 (1&/2685(6 3 0RXOGLQJ 2*&

' &DVWHOYHWHU 23$

0 .RZDO 5,,

6 6SDUNV 5,,

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

% +XJKHV 155 0 'RDQH ('2 2( 5)

2WKHUV +/- WR EH DGGHG 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

$SSDUHQW 9LRODWLRQ

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW GLVFULPLQDWLRQ E\ D &RPPLVVLRQ OLFHQVHH DJDLQVW DQ HPSOR\HH IRU HQJDJLQJ LQ FHUWDLQ SURWHFWHG DFWLYLWLHV LV SURKLELWHG 'LVFULPLQDWLRQ LQFOXGHV GLVFKDUJH DQG RWKHU DFWLRQV WKDW UHODWH WR FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI HPSOR\PHQW

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW DQ\ HPSOR\HH RI D OLFHQVHH PD\ QRW  (QJDJH LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHV RU ZRXOG KDYH FDXVHG LI QRW GHWHFWHG D OLFHQVHH RU DSSOLFDQW WR EH LQ YLRODWLRQ RI DQ\ UXOH UHJXODWLRQ RU RUGHU RU DQ\ WHUP FRQGLWLRQ RU OLPLWDWLRQ RI DQ\

OLFHQVH LVVXHG E\ WKH &RPPLVVLRQ

&RQWUDU\ WR WKH DERYH RQ 0DUFK   \RX HQJDJHG LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHG 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$  DQ 15& OLFHQVHH WR GLVFULPLQDWH DJDLQVW D IRUPHU 79$ 6LWH

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

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

>'DWH@

,$

0U -RVHSK 6KHD

$5(66 5(029('

68%-(&7 18&/($5 5(*8/$725< &200,66,21 2)),&( 2) ,19(67,*$7,216 5(3257 12 

'HDU 0U 6KHD

7KLV OHWWHU UHIHUV WR DQ LQYHVWLJDWLRQ FRPSOHWHG RQ -DQXDU\   E\ WKH 86 1XFOHDU 5HJXODWRU\ &RPPLVVLRQ¶V 15& 2IILFH RI ,QYHVWLJDWLRQV 2, FRQFHUQLQJ \RXU DFWLYLWLHV DW WKH 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$ &RUSRUDWH 2IILFH 7KH SXUSRVH RI WKH LQYHVWLJDWLRQ ZDV WR GHWHUPLQH ZKHWKHU D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV HPSOR\HG E\ 79$

&RUSRUDWH ZDV WKH VXEMHFW RI GLVFULPLQDWLRQ IRU SDUWLFLSDWLQJ LQ D SURWHFWHG DFWLYLW\ LQ YLRODWLRQ RI 7LWOH  RI WKH Code of Federal Regulations  &)5  ³(PSOR\HH 3URWHFWLRQ'

7KH 15& GHWHUPLQHG WKDW WKH IRUPHU HPSOR\HH ZDV SODFHG RQ SDLG DGPLQLVWUDWLYH OHDYH RQ 2FWREHU   DQG WHUPLQDWHG RQ -DQXDU\   LQ SDUW IRU HQJDJLQJ LQ SURWHFWHG DFWLYLWLHV %HWZHHQ  DQG  WKH IRUPHU HPSOR\HH UDLVHG QXPHURXV VDIHW\ FRQFHUQV

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

7KH 15& VWDII UHYLHZHG WKH HYLGHQFH JDWKHUHG GXULQJ WKH 15& 2, LQYHVWLJDWLRQ DQG GHWHUPLQHG WKDW WKH DFWLRQV WDNHQ DJDLQVW WKH IRUPHU HPSOR\HH ZHUH LQ DSSDUHQW YLRODWLRQ RI WKH 15&¶V UXOH SURKLELWLQJ GHOLEHUDWH PLVFRQGXFW  &)5  D  %DVHG RQ WKH HYLGHQFH GHYHORSHG GXULQJ WKH LQYHVWLJDWLRQ DQG VXEVHTXHQW VWDII DQDO\VLV LW DSSHDUV WKDW \RX DV WKH 9LFH 3UHVLGHQW RI 5HJXODWRU\ $IIDLUV HQJDJHG LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHG DQ 15& OLFHQVHH WR EH LQ YLRODWLRQ RI  &)5  ³(PSOR\HH 3URWHFWLRQ' 7KLV DSSDUHQW YLRODWLRQ LV EHLQJ FRQVLGHUHG IRU HVFDODWHG HQIRUFHPHQW DFWLRQ LQ DFFRUGDQFH ZLWK WKH 15& (QIRUFHPHQW 3ROLF\ 7KH FXUUHQW (QIRUFHPHQW 3ROLF\ FDQ EH IRXQG RQ WKH 15&¶V :HE VLWH DW ZZZQUFJRYDERXW

QUFUHJXODWRU\HQIRUFHPHQWHQIRUFHSROKWPO

7KH DSSDUHQW YLRODWLRQ ZKLFK LV EDVHG RQ WKH 15&¶V 2, LQYHVWLJDWLRQ DQG VWDII¶V DQDO\VLV RI WKH HYLGHQFH ZDV GLVFXVVHG ZLWK \RX GXULQJ D >GDWH@ WHOHSKRQH FRQYHUVDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ 6LQFH WKH 15& KDV QRW PDGH D ILQDO GHWHUPLQDWLRQ LQ WKLV PDWWHU QR 1RWLFH RI 9LRODWLRQ LV EHLQJ LVVXHG DW WKLV WLPH ,Q DGGLWLRQ SOHDVH EH DGYLVHG WKDW WKH FKDUDFWHUL]DWLRQ RI WKH DSSDUHQW YLRODWLRQV DQG WKH QXPEHU RI YLRODWLRQV PD\ FKDQJH DV D UHVXOW RI IXUWKHU 15& UHYLHZ

%HIRUH WKH 15& PDNHV LWV HQIRUFHPHQW GHFLVLRQ D FORVHG SUHGHFLVLRQDO HQIRUFHPHQW FRQIHUHQFH 3(& ZLOO EH KHOG WR GLVFXVV WKH DSSDUHQW YLRODWLRQ 7KH 15& ZLOO FRQWDFW \RX WR GHWHUPLQH D PXWXDOO\ DJUHHDEOH GDWH WLPH DQG ORFDWLRQ IRU WKH 3(& 7KH 3(& ZLOO EH FORVHG WR SXEOLF REVHUYDWLRQ VLQFH LW LV DVVRFLDWHG ZLWK DQ 2, UHSRUW DQG WKH UHVXOWV KDYH QRW EHHQ SXEOLFO\

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

VKRXOG WDNH LQWR FRQVLGHUDWLRQ LQ PDNLQJ DQ HQIRUFHPHQW GHFLVLRQ $ 3(& VKRXOG EH KHOG ZLWKLQ

 GD\V RI WKH GDWH RI WKLV OHWWHU

7KH 15&¶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

(QFORVHG LV WKH UHGDFWHG 5HSRUW RI ,QYHVWLJDWLRQ 52,  7KH 2, UHSRUW SURYLGHV DQ RYHUYLHZ RI WKH HYLGHQFH JDWKHUHG GXULQJ WKH LQYHVWLJDWLRQ %HFDXVH WKH 15& KDV QRW PDGH D ILQDO GHFLVLRQ UHJDUGLQJ WKH DSSDUHQW YLRODWLRQ WKH 15& ZLOO QRW PDNH WKH 2, UHSRUW DYDLODEOH WR WKH JHQHUDO SXEOLF DQG ZH UHTXHVW WKDW \RX DOVR UHIUDLQ IURP GRLQJ VR 2WKHU 3(& SDUWLFLSDQWV ZLOO DOVR EH VHQW D FRS\ RI WKH UHGDFWHG 2, UHSRUW

$ FRS\ RI WKLV OHWWHU DQG LWV HQFORVXUHV ZLOO QRW EH PDGH SXEOLFO\ DYDLODEOH DW WKLV WLPH +RZHYHU

LI WKH 15& VXEVHTXHQWO\ LVVXHV DQ HQIRUFHPHQW DFWLRQ WR \RX LQ DFFRUGDQFH ZLWK  &)5 

RI WKH 15& V 5XOHV RI 3UDFWLFH D FRS\ RI WKLV OHWWHU ZLOO EH PDGH DYDLODEOH HOHFWURQLFDOO\ IRU SXEOLF LQVSHFWLRQ LQ WKH 15& 3XEOLF 'RFXPHQW 5RRP RU IURP WKH 15&¶V GRFXPHQW V\VWHP

$'$06  $'$06 LV DFFHVVLEOH IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJ

UPDGDPVKWPO ,Q DGGLWLRQ WKLV OHWWHU ZLOO EH PDLQWDLQHG E\ WKH 2IILFH RI (QIRUFHPHQW LQ DQ 15& 3ULYDF\ $FW V\VWHP RI UHFRUGV 15& (QIRUFHPHQW $FWLRQV $JDLQVW ,QGLYLGXDOV 7KH 15& V\VWHP QRWLFH ZKLFK SURYLGHV GHWDLOHG LQIRUPDWLRQ DERXW WKLV V\VWHP RI UHFRUGV FDQ EH DFFHVVHG IURP WKH 15& :HE VLWH DW KWWSZZZQUFJRYUHDGLQJUPIRLDSULYDF\V\VWHPVKWPO

6LQFHUHO\

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

  • HRUJH :LOVRQ 'LUHFWRU 15& 2IILFH RI (QIRUFHPHQW (QFORVXUHV

 $SSDUHQW 9LRODWLRQV

 5HSRUW RI WKH 2IILFH RI

,QYHVWLJDWLRQ 1R 

(;(037 )520 38%/,& ',6&/2685(

',675,%87,21 :,7+287 (1&/2685(6 3 0RXOGLQJ 2*&

' &DVWHOYHWHU 23$

0 .RZDO 5,,

6 6SDUNV 5,,

% +XJKHV 155 0 'RDQH ('2 2( 5)

2WKHUV +/- WR EH DGGHG 2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ

$SSDUHQW 9LRODWLRQV

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW GLVFULPLQDWLRQ E\ D &RPPLVVLRQ OLFHQVHH DJDLQVW DQ HPSOR\HH IRU HQJDJLQJ LQ FHUWDLQ SURWHFWHG DFWLYLWLHV LV SURKLELWHG 'LVFULPLQDWLRQ LQFOXGHV GLVFKDUJH DQG RWKHU DFWLRQV WKDW UHODWH WR FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI HPSOR\PHQW

 &)5  D VWDWHV LQ UHOHYDQW SDUW WKDW DQ\ HPSOR\HH RI D OLFHQVHH PD\ QRW  (QJDJH LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHV RU ZRXOG KDYH FDXVHG LI QRW GHWHFWHG D OLFHQVHH RU DSSOLFDQW WR EH LQ YLRODWLRQ RI DQ\ UXOH UHJXODWLRQ RU RUGHU RU DQ\ WHUP FRQGLWLRQ RU OLPLWDWLRQ RI DQ\ OLFHQVH LVVXHG E\ WKH &RPPLVVLRQ

&RQWUDU\ WR WKH DERYH EHWZHHQ 2FWREHU   DQG -DQXDU\   \RX HQJDJHG LQ GHOLEHUDWH PLVFRQGXFW WKDW FDXVHG WKH 7HQQHVVHH 9DOOH\ $XWKRULW\ 79$  DQ 15& OLFHQVHH WR GLVFULPLQDWH DJDLQVW D IRUPHU 0DQDJHU RI (PHUJLQJ 5HJXODWRU\ ,VVXHV IRU HQJDJLQJ LQ D SURWHFWHG DFWLYLW\ 6SHFLILFDOO\ WKH IRUPHU HPSOR\HH HQJDJHG LQ D SURWHFWHG DFWLYLW\ E\ UDLVLQJ FRQFHUQV RI D FKLOOHG ZRUN HQYLURQPHQW WR \RX DQG D 79$ DWWRUQH\ GXULQJ D 79$ 2IILFH RI WKH

  • HQHUDO &RXQVHO LQYHVWLJDWLRQ $IWHU EHFRPLQJ DZDUH RI WKLV SURWHFWHG DFWLYLW\ \RX DV WKH 9LFH 3UHVLGHQW RI 5HJXODWRU\ $IIDLUV SODFHG WKH IRUPHU HPSOR\HH RQ SDLG DGPLQLVWUDWLYH OHDYH DQG SOD\HG D VLJQLILFDQW UROH LQ WHUPLQDWLQJ WKH IRUPHU HPSOR\HH <RXU DFWLRQV ZHUH EDVHG DW OHDVW LQ SDUW RQ WKH IRUPHU HPSOR\HH HQJDJLQJ LQ D SURWHFWHG DFWLYLW\

2IILFLDO 8VH 2QO\ +/- 3UHGHFLVLRQDO (QIRUFHPHQW ,QIRUPDWLRQ